Practice

Royalty Monetization

Realizing the value of royalties for universities, non-profits, life sciences companies and others

Our Royalty Monetization team is widely recognized as the leader in the highly specialized field of pharmaceutical royalty monetizations (both classic royalty monetizations and synthetic royalty monetizations). The team has been involved in the royalty monetization market from its earliest stages, having handled virtually all the landmark transactions in this unique area, and has advised on numerous royalty monetization transactions with an aggregate value in excess of $10 billion.

Our Royalty Monetization team is especially well-known for its representations of major universities and non-profit institutions in these transactions, but the team also advises all the other principal participants, including purchasers/investors, individual inventors, and life sciences companies.  Our deep experience in royalty monetizations has given us an unparalleled understanding of, and familiarity with, the perspectives and requirements of the participants in this novel and growing market and allows us to design structures to successfully and efficiently implement these unique and complex transactions.

As part of this work, we routinely assist clients with worldwide patent and regulatory exclusivity issues, including worldwide patent term extension issues. We also provide expertise in licensing matters specifically relevant to IP and royalty monetization transactions.

News & Insights

Experience

SELECTED UNIVERSITY/NON-PROFIT REPRESENTATIVE MATTERS
  • LifeArc, a leading UK-based medical research charity, in two royalty monetizations, including its landmark monetization of a portion of its royalty rights in Keytruda for $1.297 billion (approximately £1 billion), the largest single-product royalty monetization ever done by a non-profit, and its sale of a small proportion of its royalty rights in Keytruda for $150 million (approximately £115 million)
  • University of Newcastle upon Tyne, a UK public research university, in its monetization of a portion of its royalty interests in Rubraca
  • Cold Spring Harbor Laboratory, a leading not-for-profit research institute founded in 1890 and home to eight Nobel Prize winners, in its structured monetization of a portion of its royalty interests in the first product approved by the FDA for the treatment of a rare genetic disorder
  • Boston Children’s Hospital, one of the leading pediatric medical centers in the United States, in its monetization of a portion of its royalty interests in Vonvendi
  • The Walter and Eliza Hall Institute of Medical Research, Australia’s oldest medical research institute, in its monetization of a portion of its royalty interests in Venetoclax for up to U.S.$325 million (A$406 million), consisting of an up-front payment of U.S.$250 million and up to U.S.$75 million of additional payments upon the attainment of certain milestones, the largest royalty monetization by a non-profit institution outside the United States and the United Kingdom
  • Dana-Farber Cancer Institute, a world leader in cancer research, in two royalty monetizations, including its sale of a portion of its royalty interests in various Programmed Death Ligand-1 (PD-L1) cancer drugs for an up-front payment of $100 million and up to $68 million of additional payments upon the satisfaction of certain conditions
  • Group of Inventors associated with UCLA in connection with the sale by UCLA of royalty rights in respect of Xtandi for an up-front cash payment of $1.14 billion and potential additional payments based on future Xtandi sales, the largest royalty monetization done by an inventor group
  • Northwestern University, and an inventor affiliated with Northwestern University, in a series of royalty monetizations (structured both as sales and as financings through special purpose vehicles), including Northwestern’s 2007 sale of a portion of its worldwide royalty interests in Lyrica for $700 million
  • University of Pennsylvania in the structured sale of a portion of its worldwide royalty interests in Juxtapid
  • The Kennedy Trust for Rheumatology Research (a UK charitable trust which currently funds a major research institute at Oxford University) in the structured sale of a portion of its worldwide royalty interests in Remicade and Simponi, the first royalty monetization by a non-profit institution outside the United States
  • Duke University in the sale of a portion of its worldwide royalty interests in Myozyme and Lumizyme
  • University of Colorado in the structured sale of a portion of its worldwide royalty interests relating to certain uses of Botox
  • Emory University in a ground-breaking sale of its royalty interests in Emtriva for $540 million, the first royalty monetization conducted by auction and IDD’s 2005 Healthcare Deal of the Year

* Some transactions handled by attorneys prior to joining Foley Hoag